How You Lost 90% Of Your Wealth Since 1999

Dear Reader,
The stock market is for everyone. The stock market is a great place to grow your wealth. 3 qualities you will need are – continuous search for knowledge, patience and a strong mind. Anyone with these 3 qualities could have easily grown his wealth 11.8 times since 1999. Do you want to know how? Continue reading…

If you had never considered investing in stocks, this post will change your mind. Because already you have lost 90% of wealth indirectly in last 15 years. How is that possible? You will see now…

You could be in any profession – in an IT company or a govt job or an automobile company or a bank or whatsoever. Stock market never rewards a selected few. The rewards are for anyone who has a willingness to learn and is patient. Here comes a surprising fact…

A man who invested Rs. 1 Lakh in certain (?) Indian Stocks on Jan 1, 1999, will now have 11 Lakh and 80 thousand in the bank account. Which stocks? You will see now…

You should already be knowing what is NSE. NSE stands for National Stock Exchange. Many large companies list and trade in NSE. And NIFTY 50 is a popular index that reflects overall share price of 50 very large Indian companies – Reliance, TCS, HDFC and ITC to name a few. But how NIFTY 50 could have grown your wealth? You will know now…

An average investor who had invested in proportionately (?) in NIFTY 50 companies will have his wealth multiplied 10 times. What proportion I am talking about? You will now know…

NIFTY 50 is a market cap weighted (??) index. Assume “company A” is 20 times larger than “B” in terms of market cap. While calculating NIFTY 50, the share price of A will be given 20 times more importance than that of B. This simple understanding is sufficient now… So how your investment should have looked like…

Simple, based on the previous example, if you bought 1 share of B, you should have bought 20 shares of A.

But how did I say that the wealth could have grown 11.8 times. The simple logic is as follows. The NIFTY 50 benchmark which was at Rs. 890.8 in Jan 1, 1999 was at 10,507 as of Dec 29, 2017 (morning). This means, whoever invested Rs. 890.8 on Jan 1, 1999, will now be having 10,507 on Dec 29. And if you had missed, you had lost an opportunity. Hope you have something to think about…

Share this:

Leave a Reply

Your email address will not be published. Required fields are marked *

35 + = 39